Czech Republic: Employer’s Uniform Monthly Reporting Act
Author: Klára Sleglova
The Act on Employer’s Uniform Monthly Reporting is a significant step in the process of digitalisation and gradual simplification of administrative obligations of employers in the Czech Republic. Its main goal is to simplify the complicated communication with public administration authorities.
Overview of the content of the Act
The Act aims to consolidate approximately 25 different forms that employers must file on a regular basis into a single form that will have to be filed each month. This should simplify interactions with government agencies and reduce duplicative data reporting. Reports will be submitted only electronically (always by the 20th day of the following month) to the Ministry of Labour and Social Affairs, and the data will then be shared with other authorised institutions, including the Czech Social Security Administration and the Labour Office. The Act is expected to come into force on 1 January 2026.
Positive impacts of the proposed changes
The employers’ uniform monthly report will include up to 400 different data that were previously collected separately by each institution. This single form will replace several existing submissions, such as applications and opt-outs for sickness and pension insurance or notifications of commencement or termination of employment for health insurance companies. Moreover, pre-filling of income tax returns will be introduced. Based on the data provided by the employer, the tax administration will be able to generate pre-filled forms, which will simplify the process of completing the tax return for taxpayers.
Related amendment to the Income Tax Act
A related amendment to the Income Tax Act is expected to be introduced, which proposes abolition of withholding tax on income from agreements to perform work if the amount does not exceed the limit for participation in sickness insurance. This income will now be included in the normal tax base as of 1 January 2027. Furthermore, withholding tax on remuneration paid to members of corporate bodies who are individuals and tax non-residents will also be abolished from 1 January 2026. This means that more taxpayers will have to file a tax return if their income is not included in the annual settlement of advances made by their employer; however, pre-filled tax returns should lower this additional burden.
Legislative process
The legislation proposal was approved by the government and has already passed its first reading in the Chamber of Deputies in April 2025. For its final adoption, it needs to be approved by the Chamber of Deputies, the Senate, and signed by the President.
Key Action Points for Human Resources and In-House Counsel
- The administrative burden and thus also financial costs for employers should get reduced.
- Employers will have to adapt their administrative system to reflect these changes.
- Withholding tax will be abolished for incomes from agreements to perform work and remuneration of individual members of corporate bodies.
